halenstone2: When doing work for Tax Exempt church, should I still include sales tax for materials I buy to do the work?
I’m a small contractor in Texas. I’m bidding on a project for a Church that is Tax Exempt. I won’t charge the tax to perform the project, but what about the materials I buy? Will the tax exempt form clear me from having to pay for taxes on them, and how what type of paper work in involved when doing the books? Thanks.
Answers and Views:
Answer by Its Me
If you bought the materials and paid tax, yes you charge them for the tax.
If they bought the material it was likely tax exempt and they didn’t pay the tax.
So yes, charge them what is fair.
Answer by v bI would verify with your state what tax-exempt covers.
You would be in for a nasty surprise if you *are* required to charge sales tax for your work.
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